Generation Development Group started FY27 with group funds under management up 29% to $48.1 billion, led by record quarterly inflows at Generation Life and resilient growth at Evidentia. The update also points to new commercial opportunities for Lonsec in investment governance, although it contains no earnings or cash flow figures.
- Group FUM rises 29% to $48.1 billion
- Generation Life quarterly sales inflows jump 57% to $518 million
- Generation Life FUM reaches $6.38 billion, up 33%
- Evidentia FUM climbs 28% to $41.7 billion
- Lonsec launches governance offering as iRate subscribers reach 5,900
Generation Life sets a new quarterly sales record
Generation Development Group (ASX:GDG) has opened FY27 with its strongest quarterly sales performance at Generation Life, helping lift group funds under management to $48.1 billion at 30 September, up 29% from a year earlier.
Generation Life recorded $518 million in sales inflows for the quarter, 57% above the previous corresponding period and 17% higher than its previous record. Net sales also reached a new high, 25% above the prior quarterly record. Its funds under management rose to $6.38 billion, up 33% year on year and by about $432 million over the quarter.
The result extends the momentum reported in GDG's full-year update, when the group disclosed record FY26 sales. GDG attributed the latest performance to adviser demand, national distribution activity and growing interest in investment bonds as wealth-planning and retirement tools. Withdrawals moderated during the quarter, while investment growth contributed only $4.2 million, compared with $138.2 million in the corresponding period.
Evidentia expands despite softer market conditions
Evidentia Group delivered $1.54 billion of quarterly net inflows, including $74 million in net new mandates, taking FUM to $41.7 billion. That was 28% above the prior corresponding period, with the company reporting positive flows from both existing and newly won clients.
The managed accounts business said its FUM had grown 36.8% over the 12 months to 30 June 2026, compared with 22.9% for the broader sector over the same period. Those are the latest available industry figures rather than September-quarter data. Louise Watson also began as Evidentia's chief executive during the quarter, with the business targeting faster distribution growth, greater platform scale and operational efficiencies.
Lonsec adds governance services to research platform
Lonsec Research and Ratings maintained demand across its research offering, with 2,055 products researched at the September quarter and activity led by separately managed accounts. Its iRate subscriber base increased 13% to 5,900, while SuperRatings reported average spend per active client of $147,000, up 11% on the prior corresponding period.
Lonsec launched Lonsec Governance Solutions in August, creating a standalone investment governance offering that combines investment product expertise with its iRate and governance technology. The company said early engagement included several trials, but the update did not disclose revenue, contract values or conversion rates for the new service.
The operating figures are encouraging, but they leave the central financial question unanswered: how much of the FUM and flow growth will translate into revenue, margins and cash generation? GDG said technology, digital capability and product infrastructure investment continued during the quarter, making the half-year results the next meaningful test of whether commercial momentum is converting into earnings.
Bottom Line?
GDG's flow momentum is clear; the next test is whether record inflows and expanding FUM produce stronger earnings after investment in platform capability and new services.
Questions in the middle?
- Can Generation Life sustain record inflows if adviser and investor activity remains cautious?
- How much of Evidentia's net inflow growth will become recurring revenue and operating leverage?
- Will Lonsec Governance Solutions convert its early trials into material client revenue?